18 May

Financial Freedom: How can financial dependency lead to problem debt?

As progressive as some believe our society currently is, many women are financially dependant on their partners. This can lead to many unfortunate situations, especially if the relationship was to end or the financial situation changed.

Financial dependency

Financial dependency can occur for many reasons. Most people are financially dependant on their parents or guardian. Normally until they reach an age where they can earn their own money. Being financially dependent essentially means that you rely on somebody else financially for things like money, clothes, or food.

Typically, when people start to find ways to earn their own money, they become financially independent. They no longer rely on somebody else financially. However, sometimes adults can get into relationships that become quite unequal in terms of income. Although this can happen regardless of gender. Over a third of women in a couple are financially dependent on their partner, compared with just 11% of men.

Statistics show that in many couples, women rely on their partners for money- even if they work themselves. Based on a study by YouGov, 35% of women said they would not manage financially if they split up with their partner tomorrow. For men, this percentage is around 24%. Therefore, men are less likely to depend on their partners financially, but they are also less likely to be harmed financially if they split from their partners.

Women who are financially dependent on their partner

Age-old gender stereotypes often assume that the men should be the ‘breadwinner’ and the women should stay at home and care for the house and children. However, women are now getting more education, better careers, and better financial independence. Despite there being more opportunities for women to have their own financial stability, regardless of relationship status, clearly many women are still financially dependent on someone- typically a partner.

There are many reasons why a woman may become financially dependent on a partner, such as:

  • Statistically, one out of every 11 mothers in the UK are stay-at-home mums. Many mothers prefer to stay at home and their partners support them financially as it is often cheaper than paying for childcare. However, there are over 870,000 stay-at-home mums in England who would prefer to work if they could arrange good quality childcare, at an affordable price.
  • Currently, there is a gender pay gap of 16.1% for full-time employees. This means that women are statistically paid 16.1% less than men for the same job. Therefore, some women in a heterosexual couple will be earning less than their partners and so may become financially dependant on them as a result.
  • Some women move in with and start to rely on their partners financially as they cannot afford to live independently.

No matter the reason someone became financially dependent on their partner, it is worrying that so many women remain in relationships that they would otherwise leave because they don’t have the means to go elsewhere. Good financial health means that you have access to your own financial resources, regardless of your relationship status. Even if both people in a relationship are very happy with one being financially dependent on the other, it is important to acknowledge the potential downfalls.

How can financial dependency lead to debt?

If someone does not have their own income, they may not get a regular amount of money and so it can be difficult for them to keep up with bills and other payments. It can also make it difficult to then set up payment plans with creditors. Although there are different rules depending on the creditor and the relationship status of the person, it is still a relatively blurred line.

For example, if a woman purchased an item on Buy Now Pay Later but they rely on their partner financially, this could result in issues. Their partner may not have agreed to this purchase and so the debt may add up if the woman is unable to keep up with the repayments. This may be forwarded to a debt purchaser, but as the woman still does not have access to her own income, she is still unable to pay the debt purchaser. What are her options?

How can women have more control over their finances if they are currently dependent on a partner?

No matter the household income, the relationship status or the length of time people have been together, it is important to know how to take control of your own finances if your situation ever changed.

  1. Review your outgoings: Work out what you spend but using bank or credit card statements.
  2. Make a budget: Once you’ve reviewed your outgoings, you will want to make a financial plan. Create a list of short- and long-term financial goals and look at how much money you would need for each goal. You will also need to find ways to make your goals a reality. Do you need to look for a higher-paying job? Are you overspending in a certain area? We advise using IE Hub to create a budget and see what areas you over/underspend in.
  3. Find ways to reserve money: This might be difficult, especially if you don’t have a job or if you have a limited income. However, in order to get financial freedom, this is an important step. Maybe save your coffee money each day in a savings account and watch it grow over time?
  4. Get a job: If you don’t currently have a job, getting one can help you feel more secure and financially stable. This, again, can be difficult due to many personal circumstances- especially if you are a primary caregiver. However, so many companies now offer part-time, work from home, and flexible hours.

Financial Abuse

If you are financially dependent on your partner, an important question to consider is whether you are suffering from financial abuse? Financial abuse typically involves controlling someone else’s ability to acquire, use, and maintain financial resources. They may also have their own money restricted or stolen by the abuser. There are many other signs of financial abuse that can be found here.

Here are some helpful financial abuse resources:

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